Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

Moody's upgrades Greece's rating to B3, maintains positive outlook

21 Feb 2018

London, 21 February 2018 -- Moody's Investors Service, ("Moody's") has today upgraded Greece's issuer rating to B3 from Caa2. Greece's senior unsecured bond and program ratings were also upgraded to B3/(P)B3 from Caa2/(P)Caa2. The outlook remains positive. The Commercial Paper and other short-term programme ratings were affirmed at Not Prime/(P)Not Prime.

The key drivers for today's rating action are as follows:

1. Greece has achieved material fiscal and institutional improvements under its current adjustment programme, which Moody's believes will be sustained in the coming years. Those improvements in turn should help support the recovery of the economy as well as the banking sector;

2. Moody's believes that Greece will successfully conclude its third support programme and return to self-sufficiency and market-based funding. Its "clean" exit will be supported in the near term by a substantial cash buffer and over the medium to long term by the strong commitment of Greece's euro area creditors to providing further debt relief;

3. The risk of another default or restructuring on the debt owed to private investors has therefore materially declined, and the uncertainty around that judgment has also diminished materially. While Greece was at a similar juncture in mid-2014, Moody's believes that the risk of reversal and derailment of the fiscal and economic progress achieved is now materially lower.

The outlook on the ratings remains positive. Moody's could further upgrade the rating if the reforms implemented over the course of the programme yielded results that are more positive than expected, leading to sustained economic growth and a more rapid decline in the public debt ratio in the context of a stable political environment.

The long-term country ceilings for foreign-currency and local-currency bonds have been raised to Ba2 from B3, to reflect the reduced risk of Greece exiting the euro area. The long-term ceilings for foreign-currency and local-currency deposits have been raised to B3 from Caa2. The deposit ceilings remain aligned with the government bond rating to reflect the ongoing capital controls. The short-term foreign-currency bond and bank deposit ceilings remain unchanged at Not Prime (NP).

A full list of affected ratings is provided towards the end of this press release.

RATINGS RATIONALE

RATIONALE FOR UPGRADE OF THE RATING TO B3

First driver: Material fiscal and institutional improvements under the current adjustment programme, which will likely be sustained in the coming years

Greece's performance under its current third adjustment programme has exceeded expectations and has been far stronger than under its two earlier programmes. In particular, the Greek government has managed to put its public finances on a more sustainable footing, with primary surpluses in excess of 2% of GDP and close to balance in overall terms in 2016 and 2017. A significant part of the improvement is due to structural measures which will provide lasting fiscal benefits, including reforms to the income and value added tax systems, pension and health care spending reforms, restructuring of public enterprises as well as measures to contain the public wage bill. Overall, the European Commission estimates that the cumulative benefit of structural fiscal measures will amount to around 4.5% of GDP by the end of 2018.

In addition, the Greek government has legislated a contingent fiscal package of automatic tax increases and spending cuts that would be activated if needed to achieve the primary surplus target (of 3.5% of GDP) for the years 2019-2022. Those measures support the view that the budget targets are likely to be met even if economic growth turns out to be more moderate than currently expected. Such a budgetary performance should reduce the public debt ratio by around seven percentage points of GDP within the next two years, to just above 174% of GDP in 2019, from a peak of above 181% in 2017.

Significant progress has also been achieved with regards to the other objectives of the programme: Greece's profound institutional weaknesses in public and tax administration as well as the judicial system, all of which contributed to the crisis, are being addressed, as evidenced e.g. by the establishment of independent tax revenue and privatisation entities and the replacement of political appointees at the top levels of the public administration. These institutional and governance changes should over time result in visible improvements to Greece's currently low institutional strength scores.

The banking sector's key weaknesses -- including very high levels of non-performing exposures (NPEs) - are being tackled in a more forceful manner than over the past eight years. The legal and technical requirements for conducting electronic auctions -- a key measure for banks to realize collateral and accelerate the clean-up of their balance sheets -- are now in place and the banks themselves have committed to individual NPE reduction targets. Moody's also notes positively that the system's reliance on emergency liquidity from the Bank of Greece and the Eurosystem has been on a declining trend over the past year and customer deposits have been returning to the system. The banks were also able to issue covered bonds in recent months, diversifying their funding away from central bank financing. Of the €25 billion set aside in the programme for bank recapitalisation, only €5.4 billion was needed.

Economic prospects have also become more positive. The economy has started to grow, although at a still very moderate pace. Moody's notes that the pace of the recovery is similar to that in the other euro area periphery countries at a similar point of their exit from external support. Exports of goods and more recently also revenues from tourism have been rising strongly, reflecting the global and euro area recovery under way. Consumer spending has been more moderate but should benefit from the improving labour market situation as well as from the successful conclusion of the program and the ongoing stabilization of the banking sector. Investment is already benefitting from a concerted effort by the EU and official lenders such as the European Investment Bank (EIB). While Moody's is not revising its real GDP growth forecasts of 2% and 2.2% for 2018 and 2019 respectively, the agency is more confident than before that these forecasts will be realised, given that a successful conclusion of the programme should lift consumer and business confidence, and support private capital inflows.

Second driver: Successful conclusion of adjustment programme now highly likely. Greece's return to market funding will be supported by large cash buffer and creditor commitment to debt relief so as to keep borrowing needs at manageable levels

Moody's now considers it highly likely that Greece will successfully complete its third support programme in August. That view is supported by the positive conclusions that the Eurogroup reached at its meeting on 19 February, even though it delayed the formal conclusion of the third review until after the completion of two final prior actions (out of 110 in total). Greece's "clean" exit from the programme -- without further support being required or conditions attached -- and its return to self-sufficiency and market-based funding will be supported in the near term by a substantial cash buffer, using some of the remaining funds available under the program's €86 billion envelope. Moody's expects a cash buffer of at least €18 billion (around 10% of 2018 GDP) to be built up initially, so as to support investor confidence and ease Greece's return into the capital markets. This compares to debt maturities of €17.3 billion between September 2018 and December 2020. Such a buffer would be larger than those targeted by other program countries at their point of exit.

The government's funding needs will be very manageable in the coming years. Moody's estimates that gross borrowing needs will decline from around 14% of GDP this year to below 12% in 2019 and further to below 8% by 2020, in line with the latest European Commission estimates. This reflects the back-loaded repayments to the EFSF (European Financial Stability Facility) and European Stability Mechanism (ESM) (Greece's largest creditors) as well as successful liability management exercises last year that have reduced an earlier repayment "hump" in 2019. Also, the Greek government's budgetary performance has been very strong since 2016; Moody's expects a broadly balanced overall budget this year and a small overall surplus next year. In Moody's view, the large cash buffer provides similar assurance as would a precautionary or other official-sector credit line.

Over the medium to long term, the strong commitment of Greece's euro area creditors to provide further debt relief will ensure manageable borrowing needs and the support the sustainability of Greece's debt load. A first set of debt relief measures has already been implemented by the ESM over the course of 2017, resulting in an estimated reduction in Greece's debt load by 25 percentage points of GDP by 2060. Moody's expects euro area creditors to spell out the details of medium-term debt relief in the coming months as they committed to do upon successful conclusion of Greece's support programme. They are likely to include a mechanism to link debt relief to GDP growth outcomes, indicating a more flexible stance of the euro area than in the past.

Third driver: Risk of another default or restructuring on private sector debt materially lower than previously

In Moody's view, the risk of another default or restructuring on the debt owed to private sector, which is the risk captured in the rating, has materially declined, and the uncertainty around that judgment has also diminished materially. While Greece was at a similar juncture in mid-2014, Moody's believes that the risk of reversal and derailment of the fiscal and economic progress achieved is now materially lower.

The political situation and outlook are more stable. While elections will have to be held by September 2019 at the latest, the painful and politically challenging structural fiscal, economic and institutional reforms have been legislated. The current Greek government has established a stronger and more consistent track record than any of its predecessors. Greece's euro area creditors have become significantly more supportive of Greece as a result. Moody's notes that reviews have been concluded faster and in a significantly more constructive atmosphere than expected at the onset and also compared to the prior two programs.

The risk of reversal will also be limited by the likely linkage between debt relief and Greece remaining on track with its commitments to its official sector creditors. Such a link would provide a clear incentive for the Greek authorities not to reverse the key structural reforms that have been implemented over the past several years, even given inevitable domestic political pressures in the run up to the 2019 elections. Moody's still believes further debt relief will be required, given the very elevated public debt levels that even under the EC's most optimistic scenario would still stand at 126% of GDP by 2030. While Greece's official euro area creditors will not consider a reduction in the principal of outstanding debt, a series of other measures including a further extension of maturities will likely be implemented to limit Greece's gross financing needs to manageable levels (below 15% of GDP in the medium term and below 20% thereafter).

RATIONALE FOR POSITIVE OUTLOOK

The positive outlook reflects the potential for even more positive outcomes should the good track record of implementing reforms be maintained beyond the end of the adjustment programme, resulting in stronger-than-expected and sustained economic growth and a more rapid reduction in the public debt ratio than currently foreseen. That said, the two-notch upgrade already incorporates a forward-looking view of a continued economic recovery, ongoing prudent fiscal policy and a gradual decline in the very elevated public debt burden over the coming two to three years. It also incorporates Moody's expectation that further debt relief will be granted by the euro area.

WHAT COULD CHANGE THE RATING UP/DOWN

The rating could be upgraded further if the reform efforts were sustained beyond the end of the programme and yield, or look likely to yield, more positive results than currently expected in the form of stronger economic growth and a more rapid decline in the public debt ratio. Faster-than-expected improvements in the banking sector's health could also be a trigger for a positive rating action.

The rating could come under downward pressure if -- against expectations -- the Greek government decided to deviate from its commitments and reversed reforms that had been previously agreed and legislated, or if tensions with official creditors re-emerged for any other reason. This would put the euro area's continued support and commitment for further debt relief in jeopardy.

The positive conclusions that the Eurogroup announced following its meeting on 19 February signal a high likelihood that Greece will successfully complete the third review under its adjustment programme. This event prompted the publication of this credit rating action on a date that deviates from the previously scheduled release date in the sovereign release calendar, published on www.moodys.com.

GDP per capita (PPP basis, US$): 26,829 (2016 Actual) (also known as Per Capita Income)

Real GDP growth (% change): -0.2% (2016 Actual) (also known as GDP Growth)

Inflation Rate (CPI, % change Dec/Dec): 0% (2016 Actual)

Gen. Gov. Financial Balance/GDP: 0.5% (2016 Actual) (also known as Fiscal Balance)

Current Account Balance/GDP: -1.1% (2016 Actual) (also known as External Balance)

External debt/GDP: [not available]

Level of economic development: Low level of economic resilience

Default history: At least one default event (on bonds and/or loans) has been recorded since 1983.

On 20 February 2018, a rating committee was called to discuss the rating of the Greece, Government of. The main points raised during the discussion were: The issuer's governance and/or management, have materially increased. The issuer has become less susceptible to event risks. Other views raised included: The issuer's economic fundamentals, including its economic strength, have materially increased. The issuer's fiscal or financial strength, including its debt profile, has materially increased.

The principal methodology used in these ratings was Sovereign Bond Ratings published in December 2016. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

The weighting of all rating factors is described in the methodology used in this credit rating action, if applicable.

LIST OF AFFECTED RATINGS

Issuer: Greece, Government of

..Upgrades:

....Long-term Issuer Rating, upgraded to B3 from Caa2

....Senior Unsecured Regular Bond/Debenture, upgraded to B3 from Caa2

....Senior Unsecured Medium-Term Note Program, upgraded to (P)B3 from (P)Caa2

....Senior Unsecured Shelf, upgraded to (P)B3 from (P)Caa2

..Raised:

....Country Ceiling Bank Deposit Rating, raised to B3 from Caa2

....Country Ceiling Bond Rating, raised to Ba2 from B3

..Affirmations:

....Commercial Paper, affirmed NP

....Other Short Term, affirmed (P)NP

..Outlook Actions:

....Outlook remains Positive

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Kathrin Muehlbronner
Senior Vice President
Sovereign Risk Group
Moody's Investors Service Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Yves Lemay
MD - Sovereign Risk
Sovereign Risk Group
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Releasing Office:
Moody's Investors Service Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

No Related Data.
© 2018 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors. It would be reckless and inappropriate for retail investors to use MOODY’S credit ratings or publications when making an investment decision. If in doubt you should contact your financial or other professional adviser.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for appraisal and rating services rendered by it fees ranging from JPY200,000 to approximately JPY350,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.